Delphi Corp. gets $3.4 billion in financing

Delphi Corp. gets $3.4 billion in financing

US based auto part maker Delphi has said that they are accepting $3.4 billion in financing from a private equity group.

This would help the company emerge from bankruptcy protection. Delphi further said that its board named President Rodney O’Neal to replace Chairman Robert S. “Steve” Miller as chief executive starting next year.

Miller would continue to remain the company’s chairman. O’Neal would also continue to remain the president of the company.

As part of this deal, Appaloosa Management LP, Cerberus Capital Management LP and Harbinger Capital Partners Master Fund I along with Merrill Lynch & Co. and UBS Securities LLC would invest a minimum of $1.4 billion and a maximum of $3.4 billion in Delphi.

They would get common and preferred stock that will be issued in the first half of next year in return.